- Valley National Bancorp presents an offer by Silicon Valley Bank after its collapse.
- First Citizens Bancshares is also in the competition for SVB.
- A winner is expected to be selected in the sales process this weekend.
According to Bloomberg, Valley National Bancorp has joined First Citizens Bancshares on the bid for acquired Silicon Valley Bank (SVB).
Both banks presented separate offers to the federal Deposit Insurance Corp. before the deadline on Friday night, after the Fdiction confiscated the lender.
The FDIC has been trying to sell SVB for approximately two weeks and a winner is expected to be selected in the sales process this weekend.
Valley National binds to the bid for Silicon Valley Bank (SVB)
With an assessment of $ 4.7 billion, Valley National binds to First Citizens Bancshares on the bid for SVB, which is the seventeenth largest bank in the country.
The Fdico confiscated the lender after a loss of $ 2 billion and has been trying to sell it for two weeks.
The competition by Silicon Valley Bank
First Citizens Bancshares presented a very low offer in the SVB SVB sales process, which was rejected. Now, a winner is expected to be selected in the sales process this weekend.
With an assessment of $ 8.4 billion, First Citizens again participates in the competition, but this time with an additional competitor in Valley National.
This historical auction is an opportunity for regional banks to increase their presence in Silicon Valley, a region known for its vibrant technological industry.
While the acquisition of SVB could result in a significant gain for the acquirer bank, it could also present financial and reputation risks. But we will know this in the future.
Do you think this historical auction will result in a significant gain for the acquirer bank? Or could you present financial and reputable risks?